Insurance policies and quotes can be radically different between companies. Liberty Mutual vs USAA auto insurance policies have important differences and similarities that can impact which one you will choose.

Liberty Mutual’s Early Start

Liberty Mutual began in 1912 as Massachusetts Employee Insurance Association (MEIA). They took advantage of a new Massachusetts law that required employers have worker compensation insurance starting in 1911.

By 1914, MEIA expanded to selling automobile insurance. MEIA changed its name to Liberty Mutual Insurance Company in 1917 and also added public liability insurance to its products.

Liberty Mutual’s Financial Strength

Today Liberty Mutual is the fifth biggest Property and Casualty insurance company within the US. It employs over 45,000 individuals. A. M. Best gave Liberty Mutual an excellent (A) rating. In 2008, Liberty Mutual financial holdings included:

Liberty Mutual provides commercial insurance products to companies that have over 250 employees. Some of these products include:

Fire

Surety

Group life

Group disability

Worker’s compensation

Commercial automobile

Commercial peril

General liability

Global specialty

This company operates in 14 countries and across 5 continents.

How is Liberty Mutual’s Customer Satisfaction?

J. D. Powers & Associates surveys customers to collect consumer satisfaction ratings on major insurance companies. In 2009, J. D. Powers & Associates studied homeowners and automobile insurance. It used a ranking system of 1 to 5. The 1 meant “less than the rest” of the companies and the 5 meant “among the best” of the companies. Here are Liberty Mutual’s results.

The ratings first list automobile then homeowners insurance ratings second.

Customer overall experience – 3, 3

Policies offer – 3, 3

Pricing -3, 3

Contact with insurer – 3, 3

Payment and billing – 3, 3

How Did USAA Start?

The United Services Automobile Association (USAA) was created in 1922. A team of officers in the Army formed USAA to self-insure one another. This happened after private auto insurance companies refused to cover them because of occupational high-risk.

USAA set-up offices in Frankfurt, Germany and London, England in its first few years. Today its headquarters are in San Antonio, Texas. In 1924, it offered auto insurance to servicemen in all branches of the military.

USAA currently provides policies to active and former members of the Armed Forces and their family members. It also includes members of the National Guard, Officer Academy, ROTC, OCS/OTS programs.

USAA Product Lines

USAA uses its employees to offer potential customers products and financial services instead of using insurance agents. Several of those insurance products include: